Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements. More and more jurisdictions have adopted FDI screening regimes or tightened those already in place. Many jurisdictions are defining the sectors considered relevant to national security more broadly, with a strong focus on the healthcare sector in response to the COVID-19 outbreak. Indeed, many jurisdictions took specific measures in response to the pandemic, such as lowering (or eliminating) notification thresholds and otherwise tightening their regimes. Some of these measures will expire or be relaxed as the world emerges from the pandemic, but many will likely remain.
Accordingly, navigating FDI screening requirements is critical for parties contemplating cross-border investments or acquisitions. Proposed transactions are now far more likely to trigger screening requirements, even in sectors previously not considered relevant from an FDI perspective. The same transaction may trigger multiple FDI screening regimes, some involving complex cross-border consultation, as under the new EU FDI screening framework. As with global merger review requirements, identifying applicable regimes and potential substantive concerns early is an essential part of transaction planning. Indeed, FDI screening and merger review often proceed in parallel and must be closely coordinated.
Norton Rose Fulbright, from 50+ offices on four continents, together with its co-counsel, has a uniquely global perspective on the evolving landscape of FDI screening regimes. We are proud to offer this summary of FDI screening regimes in key jurisdictions around the world. Please use the below links to access brief summaries of the current FDI rules and contact information for national experts.
Naturally, these summaries are intended to provide general information only. They are not intended to be complete or to constitute legal advice by any Norton Rose Fulbright entity or other contributor. For specific advice, please do not hesitate to contact the undersigned, the authors of the relevant national summaries or your usual contact at Norton Rose Fulbright.